R326M SEIZED IN TEMBISA HOSPITAL CORRUPTION FIGHT

Proceeds forfeited will flow back into Gauteng Department of Health

IN A significant development for the National Prosecuting Authority (NPA) in its fight against corruption related to the Tembisa Hospital procurement scandal, the Johannesburg High Court has ordered the final forfeiture of assets valued at approximately R326 million associated with the alleged (Hangwani) Maumela syndicate.

The decision strengthens the NPA’s attempts to deprive the syndicate of high-end real estate, vehicles, and other valuable assets purportedly obtained with the money from illegal government contracts.

The forfeiture order follows a preservation order granted on August 14, 2025, and covers an extensive collection of luxury real estate in some of South Africa’s most exclusive suburbs, including sun-drenched beachside homes in Bantry Bay, Ballito and Three Anchor Bay, as well as in Sandhurst and Hartbeespoort.

Also forfeited are several high-performance vehicles, including Lamborghini Urus, Huracan STO, Aventador SVJ and Aventador Ultimae models; a Bentley Continental GT V8; an Isuzu D-Max; a luxury boat; and a multipurpose trailer.

The Assets Forfeiture Unit secured the order after a far-reaching investigation into allegations of procurement fraud and corruption at Tembisa Hospital between January 2019 and August 2022.

The investigation was sparked by information uncovered by slain Gauteng Department of Health official Babita Deokaran, whose reports exposed suspected procurement irregularities within the hospital’s supply chain system before she was murdered on August 23, 2021.

Her disclosures triggered an extensive forensic investigation supported by the National Treasury’s Specialised Audit Services Unit, which examined hospital payment records, supplier registrations and company ownership data spanning more than six years.

Investigators concluded that 14 companies allegedly controlled by the Maumela syndicate appeared to have unlawfully benefited from hospital contracts worth more than R400m.

The forensic investigation uncovered what authorities described as widespread manipulation of procurement processes.

According to the findings, bidding procedures were allegedly engineered to favour companies linked to the syndicate, while some businesses listed as bidders reportedly denied ever submitting quotations.

Investigators also allege that cover-quoting companies were used to create the appearance of legitimate competition while ensuring contracts were awarded to preferred entities.

Financial investigators traced the movement of funds and found that substantial amounts were allegedly diverted to purchase luxury homes, exotic vehicles and other expensive assets, while money was also allegedly used to pay bribes to officials and companies involved in the bidding process.

Only a small portion of the contract payments appeared to have been spent on supplying goods and services to the hospital.

National Director of Public Prosecutions Advocate Andy Mothibi said the court order represents another decisive step in the fight against corruption.

“The pursuit of justice for the people of South Africa continues, particularly in the fight against corruption.”

Mothibi said corruption robs communities of quality healthcare by contributing to medicine shortages, under-resourced hospitals and inadequate medical equipment.

“This is a travesty of justice.” Deputy National Director of Public Prosecutions responsible for the Assets Forfeiture Unit, Advocate Chuma Mtengwane, said all recovered proceeds will be deposited into the Criminal Asset Recovery Account and ring-fenced for the benefit of the Gauteng Department of Health.

He said the Criminal Asset Recovery Committee would oversee the proper allocation of the recovered funds.

NPA spokesperson, Kaizer Kganyago said: “The Assets Forfeiture Unit is an important tool to disrupt the syndicates and ensure that they do not use the same money to fight the state.”

Kganyago explained that the proceeds from these high-profile sales will flow directly back into the Gauteng Department of Health, turning seized luxury into public benefit.